It’s hard to believe that we’re halfway through the year, but the latest Calgary Real Estate Board (CREB) stats are out, so it must be true!
Overall, the supply of available homes is slowly starting to level off, as new listings are down year-over-year by 19 per cent, which had a trickle-down effect of slowing sales activity by six per cent. The benchmark home price in Calgary is currently $425,700, with 2,818 new listings in the last month and a median days on market of 40.
This means we have seen some prices drop to adjust to the lower level of sales – particularly in homes priced under $500,000, which is now trending into balanced market territory.
If you’re looking to buy the market is still in your favour, with 4.2 months of supply out there but be aware that the supply is starting to shrink. With mortgage rates low and prices still in flux, this is the perfect time to get out there and find a value-priced home.
But what kind of home? And where? CREB says despite a year-to-date sales drop of three per cent in detached homes, activity has improved in both the south and northwest quadrants of city. Prices have remained stable over the past few months despite a nearly four per cent drop from last year’s levels.
Anecdotally – I have seen some houses in the NW and SW get snapped up in a day or two, so when the price and area is right, people aren’t shy about pulling the trigger to buy.
So what about condos? We have been sending out some grim stats on them for the past few years and there seems to be no short-term relief, particularly with apartment-style condos. The resale inventory is at a robust 6.8 months, despite the number of new listings dropping by 15 percent. June’s benchmark for condos is $250,200 and the total price adjustment in the sector is down 17 per cent since 2014. If you want to look at the positives, condos are an attractive option for first time buyers or people downsizing.
Finally, to attached homes. People are recognizing that both semi-detached and row homes (i.e townhomes) offer good value and this is reflected in a three per cent year-over-year increase in sales. New listings have eased off somewhat, helping reduce some oversupply. June’s benchmark prices were $399,700 for a semi-detached and $286,300 for a row home. That’s still down from last year, but there’s a glimmer that prices are starting to stabilize.
I understand that people are still feeling a bit cautious and uncertain when it comes to dipping their toe back in the real estate market, but it feels like there is a little stability returning, with inventories dropping and prices slowly starting to respond to that.
The market isn’t the sole factor motivating people. Life happens and housing decisions are made for hundreds of reasons. So regardless of whether you’re buying or selling, we will ensure you have the best information, service and advice out there so you can feel happy and secure in your real estate transactions.
Now – go and enjoy our beautiful summer!